For the past few weeks, cryptocurrency communities have been ablaze with discussion over looming regulation. As cryptos have grown in popularity and gained mainstream acceptance, more politicians have advocated for regulation of decentralized finance (DeFi) markets. Today, President Joe Biden signed a crypto executive order, directing the federal government to devise a plan for crypto regulation.
Andrew Yang, a venture capitalist turned 2020 presidential candidate, recently weighed in on the matter. Why?
Yang officially entered into the world of Web 3.0 with the creation of a decentralized autonomous organization (DAO). He launched Lobby3 in February 2022. Its goal is to “eliminate poverty” by giving the underserved a stronger voice on Capitol Hill. Yang sees Web 3.0 as the tool that can make this happen.
Lobby3 and the Crypto Executive Order
For Yang, Web 3.0 is the path forward that America needs. “Lobby3 is an initiative to take the voices of Web 3 to Washington, DC,” he stated in an exclusive interview with The Defiant. He emphasized the importance of educating the public on Web 3.0 and how it can help them. The DAO’s webpage describes Lobby3 as a “project to fund effective policy advocacy and educate lawmakers about the positive potential of Web3.”
With the signing of the crypto executive order, Capitol Hill’s focus on DeFi markets is about to be at an all-time high. For many legislators, this will mean having to learn about the type of technology with which Yang is concerned.
According to Yang, the majority of legislators have not made up their minds about where they stand on crypto. If this is true, it provides a pivotal opportunity for Lobby3 to take its mission mainstream and help broaden the public’s understanding of Web 3.0.
Why Web 3.0 Matters
What is Web 3.0? According to InvestorPlace Financial News Writer Brenden Rearick, it is the latest iteration of the internet. As Rearick explains it, Web 3.0 seeks to address digital imbalances of power “by putting power back into the hands of users through decentralization.”
With lawmakers now focusing on cryptocurrencies, Yang wants to make sure that everyone understands the benefits of decentralized finance. This is particularly important he says because some sitting lawmakers have demonstrated their resistance to crypto.
What Comes Next?
As of now, the future of crypto markets is uncertain. It will likely take time for the government agencies handling the crypto executive order to formulate a plan. For investors, this raises some troubling questions. Some are worried that politicians will focus more on the risk factors associated with crypto than the benefits.
“I think we all sense instinctively that regulators are leaning much more towards the risk management side than the value creation side,” Yang stated. “So that’s the balance we have to strike.”
Lobby3 could be exactly what helps politicians come around to crypto. Yang understands the power and potential of Web 3.0. Investors should watch closely as he tries to help other politicians do the same.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
